Hertz refinances Houston office complex with $65 million in Tel Aviv bonds

Hertz Investment Group, a real estate investment firm based in Woodland Hills, Calif., has secured $65 million in financing for its Brookhollow Central office campus in northwest Houston.

The company said it raised $65 million through a bond issue on the Tel Aviv Stock Exchange to cover rental costs and pay off existing debt. Hertz acquired the three-building, 800,000-square-foot campus, which had lost Comerica Bank as anchor tenant, in 2018.

“Our existing subsidiary in Israel offers additional options for capital that most of our competitors do not have. These additional options allow us to execute our strategic plans more effectively,” Hertz Chief Financial Officer Robert Licht said in a statement. “Now that we have secured this rental package, we can deploy these funds to further strengthen rental efforts and achieve a fully stabilized occupancy level on this asset.”

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Brookhollow, located on the northwest corner of the 610 Loop, includes 2800 North Loop West, 2900 North Loop West, and 2950 North Loop West. Facilities include an auditorium-style conference room, various shops, a fitness center and a delicatessen. Resort occupancy was not immediately available.

Last year, Hertz entered into 90,000 square foot leases at Brookhollow Central, including a 21,000 square foot lease for the relocation of Christus Health’s administrative office to Houston.

“Even though the real estate market in Houston has been difficult over the past two years, we have been able to outperform our leasing efforts during this time,” said Zev Hertz, President and CEO. “We have weathered the storm for many reasons, primarily due to the property’s prime location, our focused on-site management, one-to-one relationships with our tenants, and being anchored by strong and well-established businesses. established.”

Founded in 1977, Hertz owns and manages more than 21 million square feet of office properties in 25 cities across the United States.